Last week I started my ten week stint at a start-up in Nairobi, Kenya. The people I work with provide farmers with reliable and affordable irrigation solutions. Now they're about to scale up and make their products available to more people.
While I worked to get up to speed with the challenges the company faces (and learned how to deal with the uncertainty in emerging markets), I had some very interesting discussions about how to build a sustainable business.
Established businesses have resources to invest in new lines of business, and they can diversify those investments to make sure they are taking into account changes in their environment. Small scale start-ups on the other hand are limited in their resources for growth. Even with the support of investors to fund expansion, such a company needs to make sure to invest every penny in the right place to grow in the right direction.
However, with that mindset it is easy and dangerous to try saving money at the wrong place. Building systems and processes based on the current size of the business and aiming at adapting to scale later on is a dangerous path and an almost certain recipe for failure (I have done that mistake myself 10 years ago).
Instead, if the company follows a vision of growth, it is paramount to build systems and processes with the end in mind. If the setup of systems, processes and people is not scalable, it will most likely not be a sustainable business.
